The Balearic government's proposed tourist tax has already caused sufficient damage to the local economy, but it appears that the left wing coalition is not stopping there. Yesterday Balearic Minister for Commerce, Pere Sampol, (pictured) announced that he wants to push ahead with legislation to tax big businesses. Adopting the Catalonia model, the big business tax, which would primarily correspond to large hyper-markets and superstores, would raise an extra 1'100 million pesetas a year. If approved, some 20 businesses which occupy an area of 375'000 square metres, of which 250'000 square metres are dedicated to trading, would be directly affected. The new tax is still being studied and for the moment lacks the support of the Majorcan Unionist party and the PSOE socialists, but Sampol is determined to see the tax through. However, central government has already appealed against the tourist tax on grounds that it is unconstitutional and when Catalonia introduced its big business tax, Madrid legally challenged the move.


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